The Central Bank of Tanzania stated that President Samia Suluhu Hassan is working on a directive for cryptocurrencies.

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The new president, who took power after the death of his predecessor in March, said this month that the arrival of digital currencies in Tanzania is inevitable.

“In the financial sector, we have witnessed the emergence of blockchain technology or cryptocurrency,” Hassan said this month, opening a new central bank branch in the town of Mwanza. said.

“Many countries in the world did not accept these currencies and did not start using them. However, I recommend that the central bank start working on this issue. Just be prepared.”

The Central Bank of Tanzania banned cryptocurrencies in 2019 on the grounds that they are not recognized by local law. However, this situation may change after the statements of the President of the country.

“The bank is working on the directives issued,” a spokesperson for the Bank of Tanzania told Reuters this week, and declined to give further details.

Preparations Begin

A spokesperson for the bank did not respond to questions about whether the country plans to adopt existing cryptocurrencies like Bitcoin or whether it wants to issue its own digital currency as China has done.

Hassan’s comments show that he is much more open to foreign investment. He has a different stance than his predecessor, John Magufili, who struggled with foreign gold miners and even had trouble with Kenya over market access.

Abdulmajid Nsekela, president of the Tanzania Bankers Association, welcomed Hassan’s stance. Because the $63 billion economy still relies heavily on cash transactions.

“The most difficult element for regulators is to be surprised by innovations.” said. He also added that cascading preparations will help the central bank assess risks and find ways to address them in advance.

Analysts warned that progress could be slow. Tellimer analyst Faith Mwangi said:

“The change in tone of the Tanzanian president is clear, but it will have to wait to see if the central bank can take concrete steps towards adopting cryptocurrencies.”